Impact of climate change on business strategies. German automotive companies' business strategies with respect to climate protection

Abstract or Introduction

This study will address the climate change impact on business strategies of top German automotive companies. Its goal is to assess the significant changes in business and the long-term susceptibility plans towards climate change to remain globally competitive due to increasing social and political pressure on the automotive companies. Business strategies of the German automotive industry are changing significantly as awareness of climate change is rising at an intense pace globally. The discussion of Climate change and CO2 reduction challenge is all over in the automotive and general media. According to the latest report on Climate change by IPCC, the global average temperature will likely rise by 1.5⁰ Celsius in the next 30 year.

This change in temperature will have no point of return, and It will show catastrophic effects on the world. The automotive industry is changing their business strategies and setting targets for zero carbon reduction to mitigate future climate change risks. This thesis delves deep into business strategies of top German automotive companies and their mitigation plans.This thesis highlights the different challenges that rose in top German automotive company groups. It begins with a literature review for understanding the Climate change challenge and mitigation strategy research.

The business strategies are discussed on the company activities such as organizational involvement, risk management, carbon measurement and policy, product improvement, process improvement, carbon compensation, new markets and product development, stakeholder engagement, corporate communication and political activities. The Daimler Group, Volkswagen Group and BMW Group, the leaders of the automotive industry in Germany are analyzed thoroughly in the case studies for assessing change in business strategies. Finally, based on the case studies and literature review the impact of climate change on business strategies explained and discussed.